Mining for gold might seem like a lucrative business, yet the industry also entails a large portion of risk, especially for small-tier miners such as Golden Star Resources Ltd. (GSS)
. The fluctuating price of the commodity, along with the geopolitical risks involved in mining in African nations such as Ghana, are just two of the obstacles the firm is facing. In addition, as one of the smallest gold mining firms in the industry, with a market cap of just $122 million, Golden Star has had a very difficult time financing its latest expansion projects. With share prices tumbling towards all-time lows, gurus such as Steven Cohen
, Chuck Royce
and Arnold Schneider
have already sold out their positions in the troubled firm.
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